Just before the pandemic, graphic designer Kristen Gray, moved to Bali, Indonesia to start her life as a digital nomad. Gray and her partner posted videos on social media about their stress-free luxurious life in one of the largest tourist destinations in Southeast Asia. About a year later, Gray published an infamous e-book showing how other Americans can take advantage of Indonesia’s lax visa requirements and set up shop in Bali. Things were serene, until a now-deleted thread promoting “Our Life in Bali is Yours” set the ripples churning.
For anyone curious about the deleted/hidden Bali thread pic.twitter.com/FYA3mRcMNf
— Monchyu 💪🦊 no qrt pls tq (@gastricslut) January 17, 2021
Gray explained that she and her partner moved to Bali because they could finally have a sustainable lifestyle with American pay rates and Bali’s low cost of living. But as they shared their lives on TikTok, interest grew in how they’d managed to travel and settle in a foreign country, especially during the strict travel restrictions during the COVID-19 pandemic. Gray, possibly trying to be helpful, added information about how to contact her travel agent during the pandemic and securing a visa to Indonesia. Gray’s Twitter thread caused an uproar among Indonesians, accusing her of causing an influx of tourists that was worsening the pandemic.
Eventually, the Indonesian Immigration Ministry deported Gray and her partner. Indonesians expressed their displease at digital nomads who turned their country into vacation homes that native citizens can no longer afford. And now the digital nomads have turned their sights on Africa.
The rise of digital nomads
Global North countries like the US have high-ranking passports. As a result, they can get tourist visas approved instantaneously or even get visas on arrival. With such friendly requirements, they can visit a global south country that heavily relies on foreign tourism and decide to stay to conduct their businesses. They work online, earn their incomes in their home countries, and take advantage of the lower cost of living in “exotic” tourist destinations.
Because they don’t have work permits, they don’t have to pay taxes to their new residential countries. As wealthy squatters, they can gentrify middle-income neighbourhoods, eventually pricing out locals who earn substantially less than them, pay taxes, and have less purchasing power. In Bali, rice fields that locals relied on for their income gradually disappeared. More bars and hotels popped up better to serve the influx of American and European tourists.
Indonesia is now one of the countries offering digital nomad visas. They enable remote workers to stay longer in their tourist destinations. This has happened in Barcelona and Mexico City, and locals aren’t happy. Since the pandemic, remote work has become more attractive to most workers. This enables them to do multiple jobs, removes the stress from commutes, and allows them to have flexible hours. A digital nomad gets to travel while still working. In theory, this isn’t a bad thing. It becomes a problem when these “nomads” decide to settle.
Tourists are a great source of income for many countries with popular attractions like wildlife, sports experiences, and culture centres. However, cities often have to morph to accommodate these visitors. When they are seasonal, as with the visitors who visit Kenya to witness the wildebeest migration, locals can handle the stress on infrastructure they cause. When remote workers decide to move here, they cause undue stress on fragile economic ecosystems.
The problem of digital nomads
Because of their higher purchasing power, local resources meant to serve native residents changed to better these nomads. A kibanda becomes an expensive café, a salon becomes an upscale beauty parlour, and an area that had affordable housing is now an upscale suburb with furnished two-bedroom apartments to suit their lifestyles. Affordable flats are also converted into AirBnBs, pricing out previous residents who can’t afford the new rates. Digital nomads accelerate gentrification.
This phenomenon occurs across multiple locations including Mexico City, Cape Town, Barcelona, Puerto Rico, and the Philippines. It’s turning into a form of neocolonialism where local ways of life are eroded as tourists take over a town that has to change to accommodate them and survive. Digital nomads differ from tourists because they embed themselves in the lifestyles of the locals. They then trigger gentrification and displacement. They aren’t immigrants assimilating—those who pay taxes and get the requisite permits to operate in a foreign country. Digital nomads only care that an area is cheaper than their home and seek to take advantage of the economic difference.
Conflicts also arise between digital nomads and locals. They cause friction between local service providers and foreign-owned tech startups that offer a “safer” solution. In Medellin, the Philippines, a mayor shut down an emblematic plaza because digital nomads who had settled in the area complained of rampant crime. According to Vice News, the plaza was accessible to locals before, housing iconic sculptures, and now it’s surrounded by controlled entrances with erect fences and police presence.
Digital Nomads and Kenya
Work-from-home travellers have set their sights on Kenya. It’s become a popular point of discussion for them as Kenya has a lot of cultural ties with the US and is predominated by English speakers. For digital nomads, Kenya is especially attractive because it’s affordable to them. There is also a certain laxity that foreigners are afforded where they can work or establish start-ups while still on tourist visas.
A video on Twitter went viral where a young African American man shared his reasons for why Kenya is an attractive digital nomad destination.
INTERESTING: American shares why Kenya is the best place for any African-American who want to relocate and settle in Africa. I agree 💯 with his points. pic.twitter.com/zABRJGjjuP
— Kenya West (@KinyanBoy) February 20, 2024
Many South African users shared how Americans have stopped flooding Cape Town and set their sights on Nairobi. While many Kenyans viewed it as a welcome business opportunity, others saw the pitfalls of such a migration.
Stop promoting. Sigcwele and y’all are making it near impossible for SAns to rent and own property here. https://t.co/v8B4XhX7BH
— Char_2709 (@Char_2709) March 18, 2024
What to do about it
Governments
Travel working will not be going out of style any time soon. Many work-from-home travellers will still visit cheaper locations where they can enjoy their income without having to worry about breaking the bank. As mentioned in The Conversation, the first step to ensuring a successful experience for nomads and tourists is to have a robust policy. Digital nomads don’t want to wait in long queues to get work permits processed. However, a specially designed nomad visa can be used where they will have to report their earnings during the duration of their stay. The policy can also mandate that their visit be temporary, incurring hefty fines or other punitive measures if they overstay their visa. In addition, should they decide to stay longer than a predetermined period, they should formally apply for work permits.
Secondly, the influx of digital nomads should benefit local residents before any other group. Instead of establishing a new economic class that serves to gentrify an area, they should look to develop the local areas they’re inhabiting. They should find it easier to pay local taxes. As digital nomads, they shouldn’t be allowed to outprice local residents. They can live in already high-end areas or live in hotels.
Better planning on all fronts can create a more symbiotic relationship between digital nomads and locals. Digital nomads can provide a steadier stream of tourism income rather than relying on seasonal international tourists. A country can also only allow digital nomads who can help with development efforts. For example, in Estonia, the e-Residency program allows tourists to set up digital businesses and boosts nomads’ cooperation with local startups. Malaysia also only allows digital nomads from “digital professions” who can access co-working centres where they collaborate with local digital professionals. Ultimately, a government’s goal should be to ensure that their pursuit of foreign income doesn’t create more inequality.
Digital nomads
Remote workers can try to integrate into local lives rather than trying to gentrify existing affordable areas. Most cities have upscale amenities that they can access without disrupting local life. Some areas, like Bali, Hawaii, and Cape Town, have consistently opposed the influx of digital nomads. These workers from privileged countries can heed these calls. They can ensure they only travel for tourism in specially designed areas rather than upending local life.
Travel: 8 Ways To Blend In Like a Local In A Foreign Country
Digital nomads also shouldn’t travel to avoid paying taxes to the local country where they will be working. As soon as they settle, they need to ensure they’re paying taxes and contributing to the local economy.
When digital nomads, like Gray, appear to cheat the visa system and encourage others to do the same, this is a form of neo-colonialism. Gray travelled with a social-cultural visa which prohibits doing business in Indonesia for tourists. The social-cultural visa is frequently abused by foreign tourists who want to work online in Indonesia without paying taxes. Gray told Business Insider she travelled to Bali in January 2020 but was locked in when most countries went into lockdown. After this, she was granted an emergency stay visa until September. She then renewed her social-cultural visa until she was deported in 2021.
Check out:
Travel: 5 Things To Consider When Choosing To Work Abroad
12 Travel Hacks You Should Know Before You Take Your Next International Trip
Don’t Get Conned And Ruin Your Vacation. Here Are 11 Common Travel Scams To Avoid
6 Tips For Getting Work Done While Travelling
Travelling Abroad? Here Is An International Travel Checklist You Should Follow
